Principal Financial Group® has released its second Principal Sustainable Financing Report to highlight the proceeds allocated to eligible green and social assets from the issuance of the company’s $600 million sustainability bond in August 2021. The report details allocation and key performance indicators of the proceeds which went toward green buildings (75%), renewable energy (9%), and affordable housing (16%).
The bond is one example of the company’s commitment to advancing Sustainable practices in its organization and operations – with a client-first focus central to how Environmental, Social, and Governance factors are integrated across investment portfolios.
To govern the process for this sustainability bond and future issues of green, social, and sustainability bonds, Principal created the Principal Sustainable Financing Framework (the “Framework”). According to the Framework, eligible assets may include existing or future investments that meet defined criteria to help advance the United Nations Sustainable Development Goals (U.N. SDGs). A business is only eligible if 90% or more of its revenue is derived from activities and criteria that align with U.N. SDGs. Principal obtained an independent Second-Party Opinion on its Sustainable Financing Framework. For more detail, see the Second-Party Opinion from Sustainalytics.
The sustainability bond was a five-year $600 million funding agreement-backed note (FABN) issued through Principal Life Global Funding II. BNP Paribas Securities Corp. served as the sole sustainability structuring agent and joint book runner with BofA Securities, Inc. and HSBC Securities (USA) Inc. for the sustainability bond, which drew the interest of over 60 investors.
In accordance with the company’s commitment to transparency, Principal reengaged Sustainalytics, a qualified, independent external reviewer, to verify and provide third-party, limited assurance with respect to the management of the Principal Sustainable Financing proceeds and compatibility of the selected Eligible Assets with the Principal Sustainable Financing Framework.
More information about how Principal is striving to advance sustainability initiatives is available at principal.com/sustainability.
Learn more about our corporate responsibility commitments.
Sustainalytics is not an affiliate of any member company of the Principal Financial Group®
Sustainable bond offerings are typically limited to qualified institutional buyers (QIB’s) through applicable underwriter. May not be a suitable investment for QIB’s seeking exposure to green assets.
Integration of sustainability considerations and/or environmental, social and governance (ESG) factors is qualitative and subjective by nature. There is no guarantee that the criteria used, or judgment exercised, will reflect the beliefs or values of any particular investor. There is no assurance that any strategy or integration of sustainability considerations and/or ESG factors will be successful or profitable.
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